Cognizant, the American multinational IT services and consulting firm with a significant presence in India, is considering an initial public offering (IPO) on Indian stock exchanges. If successful, this move could position Cognizant as the second-largest listed IT company in India, trailing only Tata Consultancy Services (TCS).
Strategic Assessment
Cognizant's board and management are actively evaluating opportunities to bolster shareholder value, including a potential primary offering and secondary listing in India. The company is working with legal and financial advisors to assess the feasibility and strategic implications of this initiative. While a public listing in India remains a long-term project and is subject to market conditions and other factors, Cognizant is committed to acting in the best interests of its shareholders.
Valuation Considerations
One of the key drivers behind Cognizant's interest in an Indian listing is the potential for improved valuation. Currently, Cognizant's price-to-earnings (P/E) ratio is approximately 13, whereas domestic IT services firms like TCS and Infosys trade at multiples of 22-23. Listing in India could allow Cognizant to tap into a market that typically offers richer valuations compared to global markets.
Operational Footprint and Employee Base
Cognizant has a substantial operational footprint in India, with over two-thirds (241,500) of its employees based in the country. The company was originally founded in Chennai, India, in 1994 as an in-house technology unit of Dun & Bradstreet. As of December 2023, Chennai and Hyderabad housed Cognizant's largest employee bases, each exceeding 50,000, followed by Bengaluru with nearly 40,000 employees. Cognizant India Private Limited was incorporated on June 24, 2004.
Financial Performance and Outlook
Cognizant has demonstrated consistent financial performance. The company's revenue for the quarter ended September 2025 rose 7.3% year-over-year to $5.415 billion. The company has also raised its full-year revenue growth forecast to $21.05-21.10 billion. For the full year 2024, Cognizant's revenue was $19.7 billion, a 2.0% increase year-over-year. The company's focus on client centricity, agility, and innovation is helping clients unlock hyperproductivity and enterprise-grade generative AI adoption.
India's IT Landscape
The Indian IT sector is dominated by companies like TCS, Infosys, and HCL Technologies. As of October 2025, TCS holds the top position in terms of market capitalization, followed by Infosys and HCL Technologies. Cognizant's potential listing could reshape the competitive landscape and intensify the battle for market share.
A Trend of Dual Listings
If Cognizant proceeds with its India listing, it would join Infosys and Wipro as the third IT services firm with shares listed in both the U.S. and India. This trend reflects the increasing importance of the Indian market and the desire of companies to tap into local investor pools.
Cognizant's Global Presence
While Cognizant has a strong presence in India, it is a global company with operations in various regions, including North America, Europe, and Asia. As of December 2023, the company had over 347,700 employees worldwide. Cognizant serves clients across industries, offering a range of services, including IT consulting, digital transformation, and outsourcing.
Other IPOs
In related news, consumer electronics brand Boat has filed an updated draft red herring prospectus with the market regulator SEBI, reducing its IPO size to ₹1,500 crore from the previously planned ₹2,000 crore.
